Making the Case for Government's Role in the Economy

Making the Case for Government’s Role in the Economy September 2013

Public Works is dedicated to building public will for the common good. We equip community leaders, advocates and public servants with the skills and knowledge they need to be articulate and vigorous supporters of the role of government in a functioning society.

In this presentation, we will share with you the lessons we learned from research into how Americans perceive government’s role in the economy and of fieldwork with public policy organizations, coalitions, advocates, and others interested in building support for a well-functioning public sector.

Our Goal Our goal is to help more Americans to understand that a healthy economy that works for all is made possible by a strong public sector and good public policy.

Our ChallengeThe American public is very anxious about the economy. They want action. But, they need help understanding how the economy works, the possible roles government can play in shaping the economy, and how they can influence economic policy.

4

Research To help address this challenge

From 2007 to 2009, Public Works and the Topos Partnership collaborated on research project to create a new public conversation on the role of government in the economy.

From this research, we gained a deep understanding of how Americans think the economy works and government’s role in it. This research also helped us to identify ways to engage the public more effectively in economic policy and build support for approaches that serve all Americans.

Since 2009, Public Works staff have been working with organizations across the country implementing the ideas from these research and building upon them to an effective case for government’s role in the economy.

5

Topos’ research uncovered two common perceptions of the

economyThe Economy is a Natural Force

Like natural systems, it ebbs and flows. We must take advantage of good times (sunny weather) and hunker down during a “cloudy” economic period. As with all natural systems, controlling or changing the economy seems out of the question.

In this way of thinking, individual’s choices determine individual outcomes and the overall “health” of the economy. And, as with all human choices, Americans ascribe their own moral judgments to those choices .

A Thriving Economy is the Result of Hard Work and Smart Choices

6

These ways of thinking lead people to conclude that…

The primary roles individuals play in the economy are as workers and as consumers.

Government and policy choices have no real impact.

Economic inequality is inevitable. Because individuals put forth different levels of effort, they naturally end up in different economic positions.

7

Default Views of Government When people see the economy as a natural system that functions best when left alone and they consider the true driving force behind the economy to be the choices of individuals, then it makes sense that Americans’ default view of government’s role in the economy is a skeptical one.

Last Resort Government intervention should be a last resort (e.g. Banks should be bailed out only when things were on the verge of collapse.)

Dependency Government is seen as creating dependency (e.g. Unemployment benefits deter people from getting back to work.)

Stifles businessGovernment inherently stifles the efforts of private business (e.g. minimum wage laws prevent hiring)

8

Support for Government is limited

Policing the “Bad Actors”

Protecting the “Deserving”

To the extent people are willing to grant any role for government it is limited to policing those who break the law (e.g. Ken Lay or Bernie Madoff) and protecting the truly deserving who might need some temporary help. Governmental action is reactive – not proactive.

9

What shapes Economic Outcomes?Policy?

Maybe.Hard Work? Absolutely!

The result of all this default thinking is that Americans don’t readily see policy solutions as viable strategies for an “creating” a good economy but are quick to prescribe individual remedies such as working overtime or going back to school.

10

We want to move the American public beyond these typical default understandings of how the

economy works and how government can impact it.

The economy is “free” & “natural” – have to adapt.

Individual character/luck determine outcomes.

Everyone competes for their own interests.

The strength of the overall economy – GDP, Stock Market – matters.

Government’s role is minimal and reactive.

Default Understanding

The economy is man-made and intentional.

Systems & Structures affect outcomes.

Everyone’s interests are connected and interdependent.

The economic wellbeing of average people matters.

Government’s role is fundamental and proactive.

The New Economy

11

Strategies for Telling this New Economy Story We can achieve this deeper understanding of how the economy works and government’s role by asserting a more proactive role for government in creating more equitable economy. We must:

1. Assert intentionality

2. Insert notions of interdependence

3. Articulate government’s role focusing on the public structures that are foundational to our economy and on government’s role in creating and maintaining the middle class

4. Avoid reinforcing unproductive default thinking

12

1. Assert Intentionality

To overcome the sense that the economy is a natural system, we must ground our communications in the idea of intentionality. We must help our audiences see that the economy is not something that happens to us, but rather something we proactively build.

13

1. Assert Intentionality

PurposeWe need to explain what the economy is for.

IntentionalityWe need to talk about the economy we need. We need to help our audiences see that the choices lawmakers make today will determine the strength of our economy tomorrow.

14

2. Insert Notions of Interdependence

We need to help our audiences see that our economic fates are interdependent. We must communicate that: • Our communities are one.

• When one group struggles, the impact extends beyond that group.

• Our individual success is tied to the world around us (e.g. the schools we attend, the transportation system in our community, etc.) as a whole.

15

3. Articulate Government’s RoleFocus on Public Structures as the Foundation of our Economy

One of our core challenges is to help people see how public systems and public policy choices are a foundation of our private economy – much like this image reveals the invisible infrastructure below a modern city. The private enterprise above ground is made possible by the public systems below.

16

Public Structures (like the FDIC, community colleges, & Social Security), that have been created and maintained by government are foundational to prosperity, opportunity, economic stability, and a strong middle class.

An example of how to use the Public Structures concept

17

3. Articulate Government’s RoleFocus on Government’s Role in the Middle Class

The research that Topos conducted for us confirmed that most Americans have a well-developed economic story available to them, and it centers on their notions of “the middle class,” on economic mobility, and opportunity. They feel deeply that a thriving middle class should be the goal of a good economic system – this is its “purpose.”

They recognize that a strong middle class did not happen by accident, that it was the result of choices we made as a country – public policy choices.

However, they may worry that a middle class life is becoming out of reach and has not always been available to all Americans.

18

An example of how to talk about the Middle Class

A strong middle class – the engine that drives our economy - doesn’t arise by accident, but is the result of deliberate and proactive policy choices. It provides a quality of life to which Americans aspire. It is the bedrock of our country.

19

4. Avoid Reinforcing Unproductive Default Thinking

At the beginning of this presentation, we discussed a number of the typical ways Americans consider the workings of the economy. Most of these defaults derail Americans’ thinking about the economy, leading to unproductive conclusions about how the economy works. We need to be careful to not inadvertently trigger these ways of thinking. In particular, we need to:

• Remember the economy is NOT like the weather.

• Assert that individual choices are NOT the only thing that determines outcomes.

• Explain that our individual roles in the economy do not end at worker and consumer.

• Avoid making individual actors the focus.

• Avoid reinforcing notions of nanny government and dependency.

20

We need to tell a New Economy Story

“The only thing that has ever created a good economy is the hard work, ingenuity and smart choices of our people. Government involvement creates dependency and stifles personal and business initiative.”

“The foundation of our economy rests on the health and stability of our public systems and structures. Economic activity depends on transportation systems, energy, and communications grids. It is supported by the courts, our postal system, and educational institutions. Private enterprise would not succeed without these essential public functions. America’s past investments in public systems enabled us to build today’s economy, create jobs and pave the way for innovation.”

…to a More Productive Story We need to beyond the dominant story….

For more information about talking about government’s role in the economy, we encourage you to visit www.publicworks.org.